It is understood the agreement is one of the largest speculative funding deals to have been carried out in the country. The deal will see two office buildings created at the multi-million pound development, at Quartermile 3 and Quartermile 4.
Quartermile was acquired by the Moorfield Group on behalf of Moorfield Real Estate Fund III in September 2013 for an undisclosed sum. It has said the funding deal has been agreed with M&G Real Estate, the investment arm of insurer Prudential plc.
Up to 400 jobs are to be created during the construction phase of the project. Work on the seven-storey Quartermile 4 building will commence this month and upon completion, will feature 130,600 sq ft of office space, plus 12,490 sq ft of retail space. Scheduled for completion in early 2016, work will then begin on the six-storey, 72,991 sq ft Quartermile 3 office.
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Paul Curran, Quartermile Managing Director, said: "The deal is excellent news for both Quartermile and Edinburgh. Construction of Quartemile 4 will commence in July this year making it the first speculative grade A office development to be undertaken in the city for a number of years. We are already seeing strong occupational interest and are working with our agents to secure lettings."
Charles Ferguson Davie, Chief Investment Officer at Moorfield Group, said: "The level of investment is testimony to Quartermile's continued momentum and also demonstrates the growing confidence in Edinburgh's office and property market. Quartermile 3 and 4 will provide much needed Grade A office space that will undoubtedly contribute to the city's ongoing economic development."
Once complete, Quartermile will comprise of more than 323,000 sq ft of Grade A office accommodation, 108,000 sq ft of retail and leisure space, 900 apartments, and seven acres of open landscaping. The development is expected to be completed in 2018.
(JP/IT)
